A Profit Center Is

question 25

Multiple Choice

A profit center is

• A) a responsibility center that always reports a profit.
• B) a responsibility center that incurs costs and generates revenues.
• C) evaluated by the rate of return earned on the investment allocated to the center.
• D) referred to as a loss center when operations do not meet the company's objectives.

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Definitions:

Intuitive Approach

A method or strategy that is easy to understand and use, often because it feels natural or obvious.

Ethics

The branch of philosophy that deals with questions about morality, including the concepts of right and wrong, justice, virtue, and the good life.

Etiquette

The customary code of polite behavior in society or among members of a particular profession or group.

Negative Messages

Communication that conveys denial, refusal, or bad news in a professional context.